Question 1

Paul listens to music on his iPod and iPhone,but he still buys vinyl records at his local music store on occasion,although they are getting harder to find.Vinyl records are in the __________ stage of the product life cycle.
A) introduction
B) growth
C) evaluation
D) maturity
E) decline

Accepted Answer

The vinyl record is a product that has been around for a long time and has passed through the introduction, growth, and maturity stages of the product life cycle. The fact that vinyl records are becoming harder to find suggests that they are currently in the decline stage, as newer technologies like digital music and streaming services have overtaken them in popularity.

Question 2

Firms can measure the success of a new product by all of the following factors except
A) satisfaction of its technical requirements.
B) fewer competitors in the market.
C) satisfactory sales and profits.
D) customer acceptance.
E) satisfactory performance.

Accepted Answer

Fewer competitors in the market is not a factor that directly measures the success of a new product. The other factors listed, such as satisfaction of technical requirements, sales and profits, customer acceptance, and performance, are all indicators of a successful product launch.

Question 3

Cathy has used Olay beauty products for years,even though there are many competitors on the market.She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line.Olay is in the _________ stage of the product life cycle.
A) introduction
B) growth
C) evaluation
D) maturity
E) decline

Accepted Answer

Cathy is planning to purchase a product that is part of Olay's Regenerist line, which indicates that the brand is in the maturity stage of the product life cycle. The Regenerist line has been around for a while and already has a loyal customer base, like Cathy, who continue to use the products. The introduction stage is when a new product is first introduced to the market, while the growth stage is characterized by increasing sales and expanding distribution. The evaluation stage is when a company assesses a product's performance before deciding whether to continue selling it or not. The decline stage is when a product's sales and profitability start to decrease.

Question 4

During the introduction stage of a product's life cycle,typical consumers are
A) early adopters.
B) innovators.
C) pioneers.
D) early majority.
E) laggards.

Accepted Answer

During the introduction stage of a product's life cycle, the typical consumers are the innovators who are the first to adopt new products and are always on the lookout for new ideas and products. They represent a small percentage of the total market, but they play a critical role in influencing the early success of a new product.

Question 5

During the __________ stage of the product life cycle,there are few but an increasing number of competitors.
A) growth
B) introduction
C) maturity
D) decline
E) innovation

Accepted Answer

During the growth stage, the product has gained acceptance in the market and sales are increasing rapidly. This attracts new competitors who want to enter the market and capture a share of the profits. Therefore, there are few but an increasing number of competitors during this stage.

Question 6

In the United States,most consumer packaged goods found in grocery and discount stores are in the __________ stage of the product life cycle.
A) growth
B) pioneer
C) introduction
D) decline
E) maturity

Accepted Answer

Most consumer packaged goods found in grocery and discount stores have been on the market for a while and have reached maturity in their product life cycle. This means that sales have leveled off and are not growing rapidly or experiencing a decline.

Question 7

Think back to a time when you have said,"This is great idea.How come nobody thought of this before?" Assuming no one has thought of it before,what would be the first steps to take to develop a new product idea?

Accepted Answer

The answer of Think back to a time when you...

Question 8

When a product is successful in the introductory stage of the product life cycle,
A) it moves directly into the maturity stage.
B) it is most likely to begin to launch spinoffs.
C) competition becomes less important.
D) it may start to see profits toward the end of this stage.
E) marketing costs increase significantly.

Accepted Answer

During the introductory stage, a product is usually in the process of being launched and building consumer awareness, so it is not yet profitable. However, if the product is successful in this stage, it may start to see profits toward the end of this stage as sales increase and production costs decrease. Competitors may also start to enter the market, so competition becomes more important. Marketing costs may also increase, but this is not necessarily a guarantee. The product still needs to go through the growth and maturity stages before spinoffs are considered.

Question 9

The product life cycle is theoretically __________ with regard to sales and profits.
A) U shaped
B) Y shaped
C) bell shaped
D) circular
E) flat lined

Accepted Answer

The product life cycle is typically represented by a bell-shaped curve, where sales and profits start low, then increase as the product gains popularity and reaches its peak, and finally start to decline as the product becomes obsolete or faces competition from newer products.

Question 10

How is consumer panel data collected during the test marketing phase of a new product introduction?
A) Panelists complete a questionnaire about the product.
B) Panelists scan their receipts on a home scanning device.
C) Stores provide sales data to companies.
D) Consumers voluntarily go to a website to record their preferences.
E) Focus groups are held in key markets.

Accepted Answer

During the test marketing phase, consumer panel data is typically collected through the use of home scanning devices. Panelists scan their receipts, which allows companies to track their purchasing behavior in relation to the new product. This data can be analyzed to determine the product's potential success and to make any necessary adjustments before a full product launch.

Question 11

Which of the following is not a stage in the product life cycle?
A) introduction
B) growth
C) evaluation
D) maturity
E) decline

Accepted Answer

The stages in the product life cycle are introduction, growth, maturity, and decline. Evaluation is not considered a stage in the product life cycle.

Question 12

Using the diffusion of innovation theory,what factors contributed to the rapid adoption and success of Amazon.com?

Accepted Answer

The answer of Using the diffusion of innovation theory,what factors...

Question 13

A good friend of yours wonders why you always seem to have the latest technology,long before anyone else.He then says,"I always want to wait until the bugs have been worked out.It saves me money and aggravation." Use diffusion of innovation theory to explain how you differ as consumers,and what this means to marketers.

Accepted Answer

The answer of A good friend of yours wonders why...

Question 14

In approximately 2006,hybrid cars moved from the early adopter to the early majority stage.What did this mean for marketers of hybrid cars?

Accepted Answer

The answer of In approximately 2006,hybrid cars moved from the...

Question 15

What is the difference between an innovator and an early adopter?

Accepted Answer

The answer of What is the difference between an innovator...

Question 16

In one test before product launch,customers try a sample product and are then surveyed to understand whether or not they would buy / use the product again.This is known as
A) premarket testing.
B) market testing.
C) alpha testing.
D) concept testing.
E) prelaunch testing.

Accepted Answer

Premarket testing involves giving a sample of the product to customers before it is officially launched in the market to gauge their interest and likelihood of purchasing or using the product again.

Question 17

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market,this is an example of
A) beta testing.
B) market testing.
C) premarket tests.
D) test marketing.
E) concept testing.

Accepted Answer

Beta testing involves releasing a product (in this case, a video game) to a select group of customers to try out and provide feedback on before it is officially released to the market. This allows the company to identify and fix any issues or glitches before the product goes live.

Question 18

Respond to the statement "Create or die" from a new product innovation perspective.

Accepted Answer

The answer of Respond to the statement "Create or die"...

Question 19

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States.Eiger Labs was a(n)__________ in the MP3 player market.
A) blockbuster
B) early adopter
C) pioneer
D) market tester
E) concept tester

Accepted Answer

Eiger Labs was the first company to mass-produce and sell MP3 players in the US, making them a pioneer in the market. Option A (blockbuster) implies that Eiger Labs was a massive success, which may not necessarily be true. Options B (early adopter), D (market tester), and E (concept tester) do not accurately describe Eiger Labs' role in the MP3 player market.

Question 20

Many car manufacturers have developed prototypes of alternative energy vehicles like hydrogen-fueled cars.When developing their marketing strategies,how can these firms use the diffusion of innovation curve in the early stages of product development?

Accepted Answer

The answer of Many car manufacturers have developed prototypes of...

Quiz 12: Developing New Products

Paul listens to music on his iPod and iPhone,but he still buys vinyl records at his local music store on occasion,although they are getting harder to find.Vinyl records are in the __________ stage of the product life cycle.

Firms can measure the success of a new product by all of the following factors except

Cathy has used Olay beauty products for years,even though there are many competitors on the market.She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line.Olay is in the _________ stage of the product life cycle.

During the introduction stage of a product's life cycle,typical consumers are

During the __________ stage of the product life cycle,there are few but an increasing number of competitors.

In the United States,most consumer packaged goods found in grocery and discount stores are in the __________ stage of the product life cycle.

Think back to a time when you have said,"This is great idea.How come nobody thought of this before?" Assuming no one has thought of it before,what would be the first steps to take to develop a new product idea?

When a product is successful in the introductory stage of the product life cycle,

The product life cycle is theoretically __________ with regard to sales and profits.

How is consumer panel data collected during the test marketing phase of a new product introduction?

Which of the following is not a stage in the product life cycle?

Using the diffusion of innovation theory,what factors contributed to the rapid adoption and success of Amazon.com?

In approximately 2006,hybrid cars moved from the early adopter to the early majority stage.What did this mean for marketers of hybrid cars?

What is the difference between an innovator and an early adopter?

In one test before product launch,customers try a sample product and are then surveyed to understand whether or not they would buy / use the product again.This is known as

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market,this is an example of

Respond to the statement "Create or die" from a new product innovation perspective.

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States.Eiger Labs was a(n) __________ in the MP3 player market.

Many car manufacturers have developed prototypes of alternative energy vehicles like hydrogen-fueled cars.When developing their marketing strategies,how can these firms use the diffusion of innovation curve in the early stages of product development?